Crypto market watchers are buzzing about a significant on-chain metric: the Bitcoin supply on exchanges has plunged to levels not seen in seven years. This development, highlighted by data from analytics firm CryptoQuant, suggests a major shift in investor behavior and could have profound implications for the future price trajectory of the world’s leading cryptocurrency. What Does a 7-Year Low in Bitcoin Supply on Exchanges Mean? According to CryptoQuant data, the total amount of Bitcoin held on major centralized crypto exchanges dropped to a remarkable 7-year low of 2.488 million BTC on April 25th. While the figure has slightly rebounded to 2.492 million BTC since then, it remains near this historic trough. But why is this specific number causing such a stir? Think of centralized exchanges like temporary holding bays or trading floors for cryptocurrencies. When a large amount of Bitcoin sits on these platforms, it’s often seen as readily available supply for selling. Conversely, when the supply decreases significantly, it implies that holders are moving their BTC off exchanges. This action is typically interpreted in a few key ways: Long-Term Holding (HODLing): Investors are moving their Bitcoin to personal wallets (cold storage or hardware wallets) with the intention of holding it for the long term, rather than keeping it on an exchange for immediate trading or selling. Increased Self-Custody: Growing awareness of the risks associated with keeping funds on exchanges (like hacks, platform insolvency, or regulatory actions) encourages users to take control of their private keys. Reduced Selling Pressure: Less Bitcoin available on exchanges generally means less supply readily available to meet selling orders, which can reduce downward price pressure. Anticipation of Price Rise: The act of moving BTC off exchanges is often a vote of confidence, suggesting holders expect the price to increase in the future and want to secure their assets away from trading platforms. Is This a Sign of an Impending Supply Shock? The concept of a supply shock is frequently discussed in relation to Bitcoin , especially following halving events that reduce the rate of new BTC creation. A supply shock occurs when demand significantly outstrips the available supply, potentially leading to rapid price appreciation. The shrinking amount of Bitcoin supply on exchanges is a crucial component of this narrative. Here’s how the low exchange supply contributes to the supply shock potential: Fixed Total Supply: Bitcoin has a hard cap of 21 million coins. This inherent scarcity is its foundational economic principle. Reduced New Supply: Halving events cut the block reward for miners, slowing down the rate at which new BTC enters circulation. Increasing Illiquid Supply: A growing amount of Bitcoin is held in wallets that show little to no history of spending or moving coins, indicating long-term holding. The movement off crypto exchanges adds to this illiquid supply. Potential for Rising Demand: Factors like institutional adoption (e.g., Bitcoin ETFs), increasing global uncertainty, or growing retail interest can drive up demand for Bitcoin . When you combine fixed supply, reduced new supply, increasing illiquid supply (driven by movements off crypto exchanges ), and potentially rising demand, you create the conditions ripe for a supply shock . The current low level of Bitcoin supply on exchanges is a strong indicator that a significant portion of the existing circulating supply is being locked away by long-term holders, making it less accessible for immediate purchase on open markets. Historical Context: What Happened Last Time Bitcoin Supply on Exchanges Was This Low? Looking back at the last time the Bitcoin supply on exchanges was this low – around seven years ago – provides interesting context, though it’s crucial to remember that past performance is not indicative of future results. Seven years ago places us roughly in 2017, a period that saw a significant bull run culminating in Bitcoin reaching what was then an all-time high near $20,000 by the end of the year. While correlation doesn’t equal causation, the decrease in exchange supply during that period coincided with strong upward price momentum. This historical parallel reinforces the market’s tendency to view reduced exchange balances as a bullish signal, suggesting accumulation rather than distribution by holders. What Does This Mean for You? Actionable Insights and Considerations While the 7-year low in Bitcoin supply on exchanges is a compelling data point, it’s essential to integrate it into a broader understanding of the market. Here are some takeaways: It’s a Bullish Signal, But Not a Guarantee: This metric strongly suggests that a large number of BTC holders are in accumulation mode and are preparing for potential future price increases. However, market prices are influenced by many factors, including macroeconomic conditions, regulatory news, and overall market sentiment. On-Chain Data is Powerful: Metrics like exchange balances, transaction volumes, and miner behavior provide valuable insights into the underlying health and sentiment of the Bitcoin network, offering a different perspective than just looking at price charts. Consider Self-Custody: The trend of moving BTC off exchanges highlights the importance many investors place on self-custody. If you plan to hold Bitcoin long-term, research and understand how to securely store your private keys off-exchange. Do Your Own Research (DYOR): Don’t base investment decisions solely on one metric. Combine on-chain analysis with technical analysis, fundamental analysis, and an understanding of the broader market environment. The continued decline in Bitcoin supply on exchanges is a powerful testament to the conviction of its holders. It paints a picture of a market where participants are increasingly opting to secure their assets for the long haul, potentially setting the stage for interesting dynamics should demand continue to grow. The fact that the Bitcoin supply on exchanges has hit a 7-year low is more than just an interesting statistic; it’s a reflection of evolving investor psychology and market structure. As fewer BTC sit readily available on trading platforms, the potential for supply-side constraints in the face of rising demand becomes more pronounced. While the path of Bitcoin’s price is never certain, this significant on-chain development provides compelling evidence of strong underlying holder confidence and reinforces the long-term bullish case for the digital asset. To learn more about the latest Bitcoin trends, explore our article on key developments shaping Bitcoin price action.
ULA has launched Amazon’s first Kuiper satellites, stepping up competition with SpaceX's Starlink network.
Legendary investor Ray Dalio has said the world is “on the brink” of the global monetary order breaking down, which is being accelerated by the Trump administration’s tariff disruptions. The trade tensions are fracturing the monetary, political and international world orders by fueling deglobalization and unsustainable trade imbalances, Dalio, the former CEO of hedge fund Bridgewater Associates, said in an April 28 X post. Dalio added that this is leading to irreversible damage, and an increasing number of importers and exporters, particularly between the US and China, are drastically reducing interdependencies and “making alternative plans.” “[They’re] recognizing that whatever happens with tariffs, these problems won't go away, and that radically reduced interdependencies with the US is a reality that has to be planned for.” Source: Ray Dalio Dalio said America’s role as the world’s largest consumer of manufactured goods and the largest debt issuer is looking increasingly unsustainable, and the idea that trade partners would continue selling to the US and receive dollars was “naive thinking.” As a result, more countries may increasingly bypass the US by forming new trade networks that rely on alternative currencies. While Dalio didn’t suggest which monetary alternative would eat into the dollar’s dominance, he has championed “hard money” assets like Bitcoin ( BTC ) and gold during times of global uncertainty. Less fighting, more coordination The billionaire called for more calm and coordinated action from the US to address the trade imbalances and become more self-sufficient. Dealing with the US government debt problem head-on would lead to much better results than the “path that we appear to be on,” Dalio said. “Unfortunately, thus far we haven’t seen the better ways and have instead seen disturbing fighting and volatility that are teaching lessons that are leading to irreversible bad consequences.” Dalio advised investors and policymakers to redirect their attention away from day-to-day market moves and policy announcements to deal with these “big fundamental changes” in world order. Related: Bitcoin’s safe-haven appeal grows during trade war uncertainty China has been hit hardest by the Trump administration’s tariffs, with a 145% duty on all imports, while the US’ neighbors, Canada and Mexico, were slapped with a 25% tariff on most goods. Several key Bitcoin mining manufacturing countries, such as Thailand, Indonesia and Malaysia, have also been hit with respective rates of 36%, 32% and 24%, which has already impacted machine imports into the US. Magazine: Financial nihilism in crypto is over — It’s time to dream big again
In a significant move for the cryptocurrency sector, U.S. Commerce Secretary Howard Lutnick announced on April 29th that the U.S. government will offer its full support for the domestic Bitcoin
The rise of AI-driven trading in the cryptocurrency space is revolutionizing the way investors engage with the market, enhancing efficiency and strategy. As the adoption of artificial intelligence in trading
FTX’s latest legal maneuvers underscore its ongoing battle to reclaim assets lost during its catastrophic collapse, impacting countless investors and the cryptocurrency landscape. This renewed focus on asset recovery follows
In the rapidly evolving world of technology, where advancements in artificial intelligence are constantly pushing boundaries, the hardware powering these innovations is crucial. For those invested in cryptocurrencies and blockchain, understanding the foundational tech like AI chips is increasingly relevant, as AI intersects with everything from trading algorithms to network optimization. A significant development is brewing in the semiconductor space: Chinese tech giant Huawei is reportedly making strides with a new AI chip designed to compete directly with Nvidia’s top-tier offerings. Why Are Advanced AI Chips So Important Right Now? Advanced AI chips, particularly powerful GPUs (Graphics Processing Units) and specialized AI accelerators, are the backbone of modern artificial intelligence. They are essential for: Training large, complex AI models (like those used in generative AI). Running AI inferences at scale for applications like facial recognition, autonomous driving, and natural language processing. Driving innovation in fields like scientific research, finance, and increasingly, decentralized technologies that might leverage AI for efficiency or security. The demand for these chips has surged globally, creating a high-stakes environment for manufacturers. Introducing the Huawei AI Chip : A Potential Game Changer? According to reports citing sources familiar with the matter, Huawei is actively developing its latest Ascend AI GPU, known as the Ascend 910D. This isn’t Huawei’s first foray into AI hardware, but the ambition behind the 910D appears significant. The company is reportedly reaching out to other Chinese firms, seeking partners to test the capabilities of this new silicon. The key target? Nvidia’s H100 series. This signals a clear intent from Huawei to position the Ascend 910D as a viable alternative to one of the most sought-after and powerful AI chips currently available. How Does Huawei Aim to Take On the Nvidia H100 ? Nvidia’s H100 is a powerhouse in the AI training world, renowned for its performance, efficiency, and extensive software ecosystem (CUDA). Challenging its dominance is a monumental task. While specific performance details of the Ascend 910D are not yet widely available, Huawei’s strategy likely involves: Developing competitive raw processing power and memory bandwidth. Building or enhancing its own software stack and ecosystem to support developers and researchers. Leveraging its strong relationships within the Chinese technology sector for adoption and feedback. Potentially offering cost advantages or localized support compared to international competitors. Success hinges not just on hardware specifications but also on the usability and robustness of the accompanying software and support systems. What Does This Mean for the China AI Market ? This development is particularly impactful for the China AI market. The United States has recently imposed further restrictions on the export of certain advanced AI chips to China, creating a significant void for companies relying on cutting-edge hardware for AI development and deployment. If the Huawei Ascend 910D proves capable of rivaling chips like the Nvidia H100, it could provide a crucial domestic alternative. A successful Huawei chip could help Chinese firms continue their AI research and development without being solely dependent on foreign technology, potentially accelerating domestic innovation and reducing vulnerability to export controls. This could reshape the competitive landscape within China significantly. Navigating the Landscape: Semiconductor Competition and Global Tech Shifts The rivalry between Huawei and Nvidia for AI chip supremacy is a microcosm of the broader semiconductor competition playing out on a global stage. This competition is fueled by geopolitical factors, economic incentives, and the fundamental need for advanced computing power to drive future technologies. The challenges for Huawei are substantial, including: Manufacturing capabilities under export restrictions. Building a robust software ecosystem comparable to Nvidia’s established platforms. Convincing potential customers that the Ascend 910D offers performance and reliability on par with or exceeding established options like the H100. However, the potential benefits are also high: establishing a strong domestic supplier could solidify China’s position in the global AI race and create new opportunities within the domestic market. What’s Next? Actionable Insights For those watching the tech space, particularly the intersection of AI and computing: Keep an eye on performance benchmarks and adoption rates for the Ascend 910D once it becomes more widely available for testing and deployment. Observe how the US export controls continue to evolve and how they influence domestic chip development in China and elsewhere. Consider the long-term implications for the global semiconductor supply chain and the potential for increased regionalization. Understand that advancements in AI hardware directly impact the capabilities available for various applications, including those that might eventually intersect more deeply with decentralized technologies and cryptocurrency infrastructure. Summary Huawei’s reported development of the Ascend 910D represents a significant effort to challenge the dominance of chips like the Nvidia H100 in the critical field of AI processing. This move is particularly important within the context of the China AI market, where demand for advanced hardware is high and supply chains are influenced by geopolitical factors. While significant challenges remain, a successful Huawei AI chip could reshape the landscape of semiconductor competition and accelerate domestic AI development in China. The outcome of this ambitious endeavor will be closely watched by the tech industry worldwide. To learn more about the latest AI chips trends, explore our articles on key developments shaping AI features.
Collapsed crypto exchange FTX has stepped up its efforts to recover estate assets purchased through token agreements.
XRP’s recent bullish breakout highlights significant momentum, driven by robust fundamentals and increasing social engagement within the crypto community. The cryptocurrency has seen a marked rise supported by activity in
Bitcoin price is consolidating gains above the $94,000 zone. BTC is showing positive signs and might aim for a move above the $95,500 resistance zone. Bitcoin remained supported above the $93,500 zone. The price is trading above $94,000 and the 100 hourly Simple moving average. There is a connecting bullish trend line forming with support at $94,200 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start another increase if it clears the $95,500 zone. Bitcoin Price Eyes Key Upside Break Bitcoin price remained stable above the $93,500 level and started a fresh increase . BTC was able to climb above the $94,000 and $94,200 resistance levels. The bulls were able to pump the price above the $95,200 resistance. The recent high was formed at $95,488 and the price started a downside correction. There was a drop below the $94,500 and $94,200 levels. The price dipped below the 50% Fib retracement level of the upward move from the $92,900 swing low to the $95,488 high. However, the bulls were active near the $93,500 support and the 76.4% Fib retracement level of the upward move from the $92,900 swing low to the $95,488 high. Bitcoin price is now trading above $94,200 and the 100 hourly Simple moving average . There is also a connecting bullish trend line forming with support at $94,200 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is near the $95,250 level. The first key resistance is near the $95,500 level. The next key resistance could be $96,250. A close above the $96,250 resistance might send the price further higher. In the stated case, the price could rise and test the $97,500 resistance level. Any more gains might send the price toward the $98,800 level. Another Decline In BTC? If Bitcoin fails to rise above the $95,500 resistance zone, it could start another downside correction. Immediate support on the downside is near the $94,200 level and the trend line. The first major support is near the $93,500 level. The next support is now near the $92,900 zone. Any more losses might send the price toward the $92,500 support in the near term. The main support sits at $91,200. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $94,200, followed by $93,500. Major Resistance Levels – $95,250 and $95,500.